Honda Motor is in the final stages of preparing a new hybrid vehicle production plant in Ohio, with the Japanese automaker planning to invest between 300 billion and 400 billion yen, or roughly $1.9 billion to $2.5 billion, according to Nikkei.
The plant is expected to begin production in 2030, as Honda shifts more of its North American manufacturing resources toward hybrid vehicles amid changing consumer demand for electrified cars.
Honda Puts Hybrids at the Centre of Strategy
The planned Ohio investment comes after Honda announced a major rethink of its vehicle strategy earlier this year.
The company said it would redirect more development and manufacturing resources toward hybrid vehicles, which it considers to be in strong demand. Honda plans to introduce 15 next-generation hybrid models globally by the end of fiscal 2030, with North America one of its priority markets.
The next-generation hybrids are expected to use a newly developed hybrid system and platform, with Honda targeting more than 30% lower system costs compared with the system introduced in 2023 and more than 10% better fuel economy.
Ohio Becomes a Major Hybrid Hub
Honda already has a substantial manufacturing presence in Ohio, including its Marysville Auto Plant, which has annual production capacity of around 340,000 vehicles and V6 engines.
The company has also said it will use excess capacity at its Ohio auto plants for gasoline and hybrid vehicles and make all of its North American auto plants capable of producing hybrids.
Honda is also converting part of its EV battery production lines at its joint venture with LG Energy Solution to manufacture hybrid batteries.
Investment Comes as EV Strategy Changes
The new plant reflects the changing balance between electric vehicles and hybrids in Honda's North American plans.
Honda has reduced the pace of its EV-related investment while increasing resources for gasoline and hybrid vehicles. For the three years through March 2029, the company plans to invest around 4.4 trillion yen in gasoline and hybrid vehicles, compared with about 800 billion yen for EV-related investment.
The company has said it will continue to monitor EV demand and reassess investment decisions from fiscal 2030 onward.
Building More Local Supply
Honda is also increasing the amount of locally sourced content used in its hybrid systems.
The company plans to raise local procurement of motor and inverter assemblies and components by more than four times current levels. Honda says the move is intended to support higher hybrid production, reduce supply-chain risks and limit the impact of U.S. tariffs.
That strategy could give Honda greater control over production costs and component availability as it expands hybrid manufacturing in North America.
Production Expected From 2030
According to Nikkei, the new Ohio facility is expected to begin production in 2030, although Honda has not publicly confirmed the reported investment or timeline.
The project would add to Honda's existing manufacturing footprint in the state and strengthen Ohio's role in the company's North American hybrid strategy.
With Honda preparing a new generation of hybrid models from 2027 onward, the planned plant could become an important part of the company's effort to match production capacity with demand in the U.S. market.
Honda Bets on a Longer Hybrid Runway
Honda's Ohio plans show how quickly the automaker's powertrain strategy is changing.
Rather than relying on a rapid transition to fully electric vehicles, Honda is expanding hybrid production while continuing to develop EV technology and keeping its manufacturing system flexible.
If the reported investment goes ahead, the up to $2.5 billion Ohio plant would become another major commitment to hybrid manufacturing, reinforcing Honda's belief that hybrid vehicles will remain an important part of the U.S. automotive market through the end of the decade.
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